2017 (7) TMI 941 - AT - Central Excise

Classification of goods - wrist bands - The appellant sought classification of the product under 49119990 of the Central Excise Tariff as products of printing industry - the Department ordered the classification under 63079090 as made up textile article - N/N. 30/2004-CE dated 09.07.2004 - Held that - It is reported that such wrist bands are used in places like music festivals, amusement parks etc. Even though the items are made out of non woven fabric, the essential use and character of the items is based on the matter printed on such wrist band - without the printing as required by the customers, the un-printed roll will be of no use for the purpose. Hence printing is not merely incidental to but is for the primarily use of the product. Accordingly the goods are rightly classifiable under 4911 9990 and will be eligible for clearance at Nil rate of duty - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of wrist bands under Central Excise Tariff - Applicability of Notification No.30/2004-CE

In this case, the appellant, a printing mill, appealed against the orders passed by the Commissioner (Appeals) regarding the classification of wrist bands manufactured by them. The appellant argued for the classification under chapter 49 as products of the printing industry, while the Department classified them under chapter 63 as made-up textile articles. The appellant also sought the benefit of Notification No.30/2004-CE dated 09.07.2004 if the product was to be classified under chapter 63. The raw material used in manufacturing the wrist bands was "Tyvek" spun-bonded olefin, which underwent a series of processes including customized printing, die-cutting, adhesive application, and inkjet printing. The Commissioner (Appeals) classified the goods under chapter 63 based on the input material being textile particles classified under CETH 5603, ruling out chapter 49 classification.

During the proceedings, the appellant contended that the wrist bands should be classified under chapter 49 as products of the printing industry, citing similarities with articles covered under CETH 4911 like brochures and pamphlets. They also argued for the benefit of Notification No.30/2004-CE if the classification was under chapter 63, as per a previous ruling in their favor by the Commissioner (Appeals). The Tribunal examined samples of the wrist bands and noted their essential use and character based on the printed matter, such as the name of the resort and serial numbers. The Tribunal found that the printing was not incidental but primarily for the use of the product, leading to the classification under 4911 9990 and eligibility for duty clearance at a 'Nil' rate.

Ultimately, the Tribunal set aside the impugned orders and allowed the appeals, emphasizing that the wrist bands were rightly classified under 4911 9990 due to the essential nature of printing for their use, granting them clearance at a 'Nil' rate of duty. The decision was pronounced in open court on 30.06.2017.